What does non-dom imply and the way are the foundations altering? | EUROtoday

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Labour revealed plans to scrap the non-dom regime in April 2022.

Former Conservative chancellor Jeremy Hunt then introduced within the March 2024 Budget that the non-dom tax regime can be phased out.

According to Mr Hunt’s plans, individuals who transfer to the UK from April 2025 won’t should pay tax on cash they earn abroad for the primary 4 years.

After that interval, in the event that they proceed to stay within the UK, they’ll pay the identical tax as everybody else.

Those individuals who presently have nom-dom standing will likely be allowed a two-year transition interval, throughout which they are going to be inspired to convey their overseas wealth into the UK system.

The former chancellor mentioned eliminating the non-dom standing would increase £2.7bn a yr by 2028/29.

The Labour authorities has vowed to strengthen these deliberate reforms.

It mentioned it could take away a 50% low cost within the first yr of the brand new guidelines and embrace overseas property held in a belief inside the UK inheritance tax framework.

New Chancellor Rachel Reeves mentioned Labour’s modifications might increase £2.6bn over the course of the following Parliament.